Government Schemes For Startups [Goals & Benefits]

. 7 min read
Government Schemes For Startups [Goals & Benefits]

Startups are increasingly popular and escalating in their numbers and importance in the Indian economy, hence the various Government Schemes for Startups to increase their prospects.

The Startup India initiative seeks to create a robust ecosystem that fosters startup growth. Its mission is to assist startups in their development through innovation and technology. Many benefits are available to entrepreneurs who establish startups in order to promote growth and benefit the Indian economy. Startups recognised by the Startup India initiative are given a slew of benefits to assist them in launching their businesses in India.

Various Government Schemes for Startups

Name of Policy/Program

Goals and Benefits


Startup India

The program aims to encourage bank financing for startup ventures to increase entrepreneurship and job creation while limiting states' policymaking role. The Deen Dayal Upadhyay Swaniyojan Yojana is Rural India's version of Startup India.

A Startup India Learning Programme, online startup recognition, facilitated patent filing, easier compliance norms, relaxed procurement norms, incubator support, innovation-focused programmes for students, funding support, tax benefits, and regulatory issues relating to land use permissions, foreign investment proposals, and environmental clearances are also available. This is one of the most widely known Government Schemes for Startups.


Stand Up India

The Stand Up India initiative seeks to promote entrepreneurship and job creation at the grassroots level, with a focus on Scheduled Castes, Scheduled Tribes, and women. The following services are expected to be provided in general:

  • Assistance with finances preparing a project plan to assist in the acquisition of bank loans ranging from Rs 10 lakh to Rs 1 crore.

  • Each bank branch provides technical skill training to at least one SC/ST and one female borrower in preparation for the establishment of a greenfield enterprise in the manufacturing, service, or trade sectors.


Make in India

The Make in India initiative is one of the national government Schemes for startups that aims to turn India into a global manufacturing powerhouse. It includes a slew of proposals aimed at attracting both domestic and foreign investment in the initiative's 25 key areas, such as:

  • Automobiles

  • Chemicals

  • Information Technology

  • Pharmaceuticals

  • Textiles

  • Aviation

  • Leather

  • Tourism

  • Hospitality

  • Wellness

  • Railways

  • Infrastructure

It has established an investor facilitation cell to assist foreign businesses in finding partners and locations, and a slew of domestic Schemes have been implemented since PM Modi announced the 'Stand Up India' initiative in his Independence Day speech in 2015.


AIM platform

The National Institute of Transforming India (NITI) established AIM to provide an academic-led platform for the promotion of innovation that draws on experience garnered nationally or internationally to foster an innovative, development-focused and dependent on solid research

The primary goal of the AIM platform, one of the more well-known Government Schemes for Startups, is to encourage the development of innovative startups, self-employed entrepreneurial endeavours and hubs for their growth. Its other functionalities include:

  • Creation of unique programmes and policies to encourage innovation in a wide range of economic sectors, particularly those that are underserved and underdeveloped.

  • Providing opportunities for collaboration to various stakeholders

  • Putting in place a governance structure to manage the country's innovation ecosystem


STEP platform

The Support to Training and Employment Programme (STEP) was established by the Indian government to assist rural women in India who do not have access to ITIesque skill training in their portfolios. The Ministry of Skill Development and Entrepreneurship and NITI Aayog rewrote the guidelines for a 30-year-old project to meet modern needs.


NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

The NewGen IEDC initiative was launched by the National Science and Technology Entrepreneurship Development Board, a part of the Government of India's Department of Science and Technology. The initiative aims to instil an entrepreneurial and innovative spirit in India's youth.  It was established to assist and develop entrepreneurs through mentoring and guidance.

The NewGen IEDC programme will be implemented in educational institutions over a five-year period. Following that, the funds will be used to fund up to 20 projects under Government Schemes for Startups.


Biotech push

The Biotechnology Industry Research Assistance Council (BIRAC), a non-profit enterprise in the public sector, was established by the Department of Biotechnology to enable biotechnology-based businesses to increase their scope and revenue, instil a strategic research-based innovative mentality, and abridge the current chasm between academics and industry. 

The expectation with this is to produce high-quality goods at an affordable price. In order to boost the Indian biotechnology enterprises, particularly startups and small and medium-sized enterprises, BIRAC has formed alliances with several national and international players, and has facilitated a number of medical technology developments.


Skills development

Another significant step toward self-sufficiency was the National Skill Development Mission (NSDM). This mission, which began in July 2015, aims to promote cross-sector and cross-state collaboration in skilled industries and Schemes, and to facilitate decision-making without sacrificing quality or speed.

In the preliminary phase, seven sub-missions were proposed to guide the mission's skilling efforts: infrastructure training, overseas employment, convergence, sustainable livelihood, and leveraging public infrastructure are all examples of intuitional training.

Startup India Initiative

According to the Startup India Action Plan, the following conditions must be met by a business to be considered a startup:

  • Being registered or incorporated in India for a period of up to ten years from the date of incorporation.
  • Being a limited liability company, a partnership, or a private limited company
  • The company has never had an annual turnover of more than Rs. 100 crore in any fiscal year since its incorporation/registration.
  • Is a scalable business model with the potential to create jobs or wealth or is working to innovate, develop, or improve products, processes, or services

The Indian government has launched a mobile app and a website to facilitate startup registration. Anyone who wants to start a business can do so by completing a simple form on the website and uploading the required documents. The entire procedure is carried out entirely online. The government also provides a list of patent and trademark facilitators.  Another one of the government Schemes for startups is that they will offer high-quality Intellectual Property Rights Services such as expedited patent examination and lower fees. The government will cover all facilitator fees, leaving the startup only responsible for the statutory fees. They can save up to 80% on the cost of patent filing.

The government has established a fund of 10,000 crore rupees to provide venture capital to startups. The government is also providing guarantees to lenders in order to encourage banks and other financial institutions to provide venture capital. Being a startup is already challenging enough, and even more so without the financial accounting considerations. OkCredit is a financial accounting service that helps you to focus on your growth while it handles all your monetary woes.

Startups that receive Inter-Ministerial Board certification will be tax-free for three years. Government contracts are encouraged to be applied for by startups. They are exempt from the "prior experience/turnover" requirements that apply to regular businesses that respond to government tenders. Several regulations have been simplified to save startups time and money. Startups will be able to certify their compliance with nine labour laws and three environmental laws on their own (via the Startup mobile app). Seven new R&D parks will be built to house R&D startups.

Individuals who invest their capital gains in government-created venture funds will be tax-free. This will make it easier for startups to attract new investors. Following this plan, startups will be able to choose from a pool of VCs, allowing them to select their investors. In the event of an exit, a startup can close its doors within 90 days of filing for winding up. The government has proposed holding two startup fests each year, both nationally and internationally, to bring together the various stakeholders. As a result of this there will be numerous networking opportunities.


These Government Schemes for Startups have made India one of the major hubs for new startups to build their foundations on solid ground. They provide stability and timely capital for startups, while keeping repayment terms flexible and easy to comply with.

We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
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Q. When was Startup India started?

Ans. It was first announced on 15th August 2015.

Q. What is AIM?

Ans. The Atal Innovation Mission (AIM) is the flagship initiative of the Government of India to foster a culture of innovation and entrepreneurship throughout the country.

Q. What is eBiz portal?

Ans. It is India's first Government-to-Business (G2B) services portal, with the goal of improving the country's business environment.

Q. What is the amount of funds set up for Startup India?

Ans. A Rs 10000 crore fund has been set up to help startups.

Q. Are Startups tax-exempt?

Ans. Startups that receive Inter-Ministerial Board certification will be tax-free for three years.